Political Opposition Mounts Against François Bayrou's Controversial 2026 Budget Cuts

On July 20, 2025, significant backlash has arisen in response to French Prime Minister François Bayrou's budget savings plan for 2026, which aims to save €44 billion. Critics, including former Prime Minister Bernard Cazeneuve, have labeled the proposed measures as inadequate and ideologically driven, calling for more comprehensive economic reforms.

Bayrou's plan is marked by austere measures across various sectors, including health care cuts, a freeze on social benefit adjustments, and potential elimination of public holidays. Noteworthy specifics involve doubling the annual medical expense cap for patients from €50 to €100, alongside halving health spending increases. Cazeneuve described the proposals as "recycling" old ideas that do not address the more systemic issues facing the French economy, arguing that the focus should be on sustainable reforms rather than temporary fiscal patches.

Cazeneuve also highlighted that the government’s claims regarding the differences in work habits between the French and Germans mislead the public, emphasizing that improving employment rates is crucial. He stated, "We must enable more people to work rather than demanding existing workers to work harder."

Additionally, the plan proposes strict limits on social welfare adjustments, which will not rise with inflation, potentially impacting many households by inadvertently increasing their tax burdens. The freezing of state budgets means pensions and social assistance will remain stagnant despite inflationary pressures expected at around 1%. This has raised significant concerns about the impact on vulnerable communities across France.

Further plans include reforms to unemployment benefits, which aim to refine criteria and duration. While these reforms are ostensibly designed to incentivize return to work, critics argue they could exacerbate financial insecurity for many individuals.

Bayrou has defended his approach, calling it necessary given the projected public finance deficit of 5.4% of GDP for 2025. He argues that the measures are essential in light of continuing debt accumulation, stating, “Every second that passes, the debt increases by €5,000.” In tandem, he has proposed stringent measures against tax fraud and new contributions from high earners, especially targeting incomes above €250,000.

As discussions continue, the political landscape appears polarized, with advocates for reform demanding a more sustainable approach to fiscal policy, while the government under Bayrou pushes forward with its proposed cuts and reforms, escalating tensions within French politics.